Desperate measures by Govt to attract $ remittances – But will it work?

Desperate measures by Govt to attract $ remittances – But will it work?

Written by Zulfick Farzan

03 Dec, 2021 | 2:46 am

COLOMBO (News 1st); Experts have pointed out that Sri Lanka’s Central Bank decision to award an extra Rs. 10/- per 1 US$ worker remittance would cost the state coffers Rs. 8 Billion.

Chairman of the Advocata Institute Murtaza Jafferjee speaking to News 1st said this cost will have to borne by the cash-strapped government’s central bank, and warned that this meausure will reduce government revenue.

Commenting on the decision to freeze accounts of those who use unlawful means to send money, Jafferjee said most banks use computer systems to watch for anomalies and these informal channels would become more sophisticated.

SJB MP Dr. Harsha De Silva said “We tried this in the 1970’s also, they never work. Other countries have also tried it but they have all failed.”

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